BILL NUMBER: SB 541	CHAPTERED  09/30/00

	CHAPTER   1057
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 28, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN SENATE   MAY 28, 1999
	AMENDED IN SENATE   MARCH 25, 1999

INTRODUCED BY   Senator Johnston
   (Principal coauthor:  Assembly Member Alquist)
   (Coauthor:  Assembly Member Jackson)

                        FEBRUARY 19, 1999

   An act to amend Sections 8378.3, 8494, 54742, 54745, 54746, 54747,
54749, and 54749.5 of the Education Code, relating to education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 541, Johnston.  Education:  pregnant and parenting teens.
   Existing law states the intent of the Legislature to establish a
comprehensive, continuous, community-linked, and school-based
program, to be known as the Cal-SAFE Program, that focuses on youth
development and dropout prevention for pregnant and parenting pupils
and on child care and development services for their children.  Among
the goals of the program are that pupils who receive services for
one or more years will earn a high school diploma or its equivalent
and that their children will have enhanced school readiness.
   This bill would add as alternatives to these goals that pupils
will demonstrate progress towards completion of education goals and
their children will demonstrate progress towards meeting their
assessed developmental goals.
   Existing law requires that a school district or county
superintendent of schools that receives program funding ensure that
enrolled pupils retain their right to participate in the regular
school or educational alternative programs.
   This bill would instead require that a school district or county
superintendent of schools ensure that enrolled pupils retain their
right to participate in any comprehensive school or educational
alternative programs.
   Existing law requires a funded agency to provide child care and
development program services located on or near the schoolsite for
children of teen parents enrolled in the Cal-SAFE program and
requires the child care site to be available as a laboratory for
parenting or related courses that are offered by the funded agency to
pupils whether or not they are enrolled in the Cal-SAFE program.
   This bill would delete the provision that the child care site be
available as a laboratory for pupils whether or not they are enrolled
in the Cal-SAFE program and would instead give priority to the site
as a laboratory to pupils who are enrolled in the Cal-SAFE program.
   Existing law establishes eligibility requirements for enrollment
in the program.
   This bill would prohibit denial of initial or continuous
enrollment if the pupil has had multiple pregnancies or has more than
one child or if the pupil's eligibility status changed from pregnant
to parenting.
   Existing law requires reimbursement pursuant to the Cal-SAFE
program for providing child care services to pupils enrolled in a
summer school program or a school program operating more than 180
days to be based on the pupil's hours of attendance.
   This bill would instead require eligibility for child care
services for these pupils to be determined by the parent's hours of
enrollment and only for those hours necessary to further the
completion of the parent's educational program.  The bill would
require reimbursements for child care to be reduced on a pro rata
basis if funding is insufficient to cover the full costs of Cal-SAFE
child care.
   Existing law establishes the Child Care Facilities Revolving Fund
to provide funding for the purchase of new relocatable child care
facilities for lease to school districts and contracting agencies
that provide child care and development services.  Existing law makes
certain child care and development programs eligible to receive a
loan for the renovation and repair of facilities or to lease
relocatable facilities.
   This bill would make school districts and county offices of
education that operate a Cal-SAFE program eligible to apply for and
receive funding from the Child Care Facilities Revolving Fund and
would make child care and development programs conducted pursuant to
the Cal-SAFE program eligible for the loan program.
   The bill would make other technical changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8278.3 of the Education Code is amended to
read:
   8278.3.  (a) (1) The Child Care Facilities Revolving Fund is
hereby established in the State Treasury to provide funding for the
purchase of new relocatable child care facilities for lease to school
districts and contracting agencies that provide child care and
development services, pursuant to this chapter.  The Superintendent
of Public Instruction may transfer state funds appropriated for child
care facilities into this fund for allocation to school districts
and contracting agencies, as specified, for the purchase,
transportation, and installation of facilities for replacement and
expansion of capacity.  School districts and contracting agencies
using facilities made available by the use of these funds shall be
charged a leasing fee, either at a fair market value for those
facilities or at an amount sufficient to amortize the cost of
purchase and relocation, whichever is lower, over a 10-year period.
Upon full repayment of the purchase and relocation costs, title shall
transfer from the State of California to the school district or
contracting agency.  The Superintendent of Public Instruction shall
deposit all revenue derived from the lease payments into the Child
Care Facilities Revolving Fund.
   (2) Notwithstanding Section 13340 of the Government Code, all
moneys in the fund, including moneys deposited from lease payments,
shall be continuously appropriated, without regard to fiscal year, to
the Superintendent of Public Instruction for expenditure pursuant to
this article.
   (b) On or before November 1, 1997, the Superintendent of Public
Instruction shall submit a plan to the Governor's Office of Child
Development and Education, the Department of Finance, and the
Legislative Analyst's office.  This plan shall specify the
application procedures, the allowable uses of the funds, and the form
of the agreement, including, but not necessarily limited to,
provisions to protect the state's interest, including provisions
relating to maintenance and the event of contract termination.
   (c) On or before August 1, 1998, and on or before August 1 of each
fiscal year thereafter, the Superintendent of Public Instruction
shall submit to the Governor's Office of Child Development and
Education, the Department of Finance, and the Legislative Analyst's
office a report detailing the number of funding requests received,
the types of agencies which received this facilities funding, the
increased capacity that these facilities generated, a description of
how the facilities are being used, and a projection of the lease
payments collected and the funds available for future use.
   (d) School districts and county offices of education that operate
a Cal-SAFE program pursuant to Article 7.1 (commencing with Section
54740) of Chapter 9 of Part 29 are eligible to apply for and receive
funding pursuant to this section.
  SEC. 2.  Section 8494 of the Education Code is amended to read:
   8494.  (a) All of the following child care and development
programs, other than those providing extended day care services,
shall be eligible to receive a loan for the renovation and repair of
facilities used for the program or to lease relocatable facilities to
be used for the program:
   (1) Private nonprofit child care and development programs
currently, or soon to be, under contract with the State Department of
Education pursuant to Section 8262.
   (2) Child care and development programs conducted pursuant to
Article 4 (commencing with Section 8225).
   (3) Child care and development programs operated by, or in a
facility owned by, a public entity.
   (4) Child care and development programs conducted pursuant to
Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29.

   (b) A recipient of a loan pursuant to this section shall document
that the renovated facility shall comply with all laws and
regulations applicable to child care facilities provided for pursuant
to Chapter 3.4 (commencing with Section 1596.70) and Chapter 3.5
(commencing with Section 1596.90) of Division 2 of the  Health and
Safety Code.
   (c) A recipient of a loan pursuant to this section shall assure
the board that the renovated facility shall be used for the purposes
of the child care and development program for the entire loan period,
which shall be determined by the board as follows:
   (1) For loans equal to or less than thirty thousand dollars
($30,000), not less than three years.
   (2) For loans exceeding thirty thousand dollars ($30,000), the
loan period shall increase one year for each additional ten thousand
dollars ($10,000) or part thereof, to a maximum of fifty thousand
dollars ($50,000).
   (d) Interest on the loan principal shall be charged at a rate
equal to the average of the interest rate applied to the last three
bond sales pursuant to Chapter 21.6 (commencing with Section 17695)
of Part 10.
   (e) In the event that a recipient ceases to use the renovated
facility for purposes of the child care and development program prior
to the expiration of the loan period, the board shall collect the
entire outstanding balance of the loan, plus interest,
notwithstanding the loan period originally set pursuant to
subdivision (c), unless the board deems it appropriate to waive
repayment at that time.
   (f) If the renovated facility has been continuously used for
purposes of the child care and development program for the entire
loan period, the board shall waive repayment of the amount of the
loan principal, plus interest, at the end of the loan period.
  SEC. 3.  Section 54742 of the Education Code is amended to read:
   54742.  (a) It is the intent of the Legislature to establish a
comprehensive, continuous, and community linked school-based program
that focuses on youth development and dropout prevention for pregnant
and parenting pupils and on child care and development services for
their children for the purpose of improving results for approximately
60,000 pupils and their children.
   (b) The goals of the program are all of the following:
   (1) A significant number of eligible female and male pupils in
need of targeted supportive services related to school success will
be served.
   (2) Pupils shall have the opportunity to be continuously enrolled
in the Cal-SAFE program through graduation from high school.
   (3) Pupils served who receive program services for one or more
years will earn a high school diploma or its equivalent or
demonstrate progress towards completion of education goals.
   (4) Pupils served who graduate will transition to postsecondary
education, including a technical school, or into the world of work.
   (5) Pupils served and their children will not become welfare
dependent.
   (6) Pupils served will demonstrate effective parenting skills.
   (7) Pupils served will not have a repeat birth or father a repeat
pregnancy before graduating from high school.
   (8) Pregnant pupils served will not have a low birth weight baby.

   (9) Children of enrolled teen parents will receive child care and
development services based upon the assessed developmental and health
needs of each child.
   (10) Children of enrolled teen parents will receive health
screening and immunizations except when the custodial parent annually
provides a written request for an exemption pursuant to Section
49451 and Section 120365 of the Health and Safety Code.
   (11) Children of enrolled teen parents will have enhanced school
readiness, demonstrate progress towards meeting their assessed
developmental goals, or both.
   (c) It is the intent of the Legislature that if there are not
enough resources to serve all eligible pupils, the program shall
target services to pupils who are most in need or to pupils who are
least likely to access services on their own.
   (d) It is the intent of the Legislature that Cal-SAFE programs be
integrated with local Adolescent Family Life programs and Cal-Learn
programs in a manner that avoids duplication of services.
  SEC. 4.  Section 54745 of the Education Code is amended to read:
   54745.  (a) In the administration of the Cal-SAFE program, the
following provisions shall apply:
   (1) Participation by a school district or county superintendent of
schools in the Cal-SAFE program is voluntary.
   (2) The governing board of a school district or county
superintendent of schools may submit an application to the State
Department of Education in the manner, form, and date specified by
the department to establish and maintain a Cal-SAFE program.
   (3) A school district or county superintendent of schools approved
to implement the Cal-SAFE program shall be funded as one program to
be operated at one or multiple sites depending upon the need within
the service area.
   (4) Notwithstanding any other provision of law, a school district
or county superintendent of schools operating, by October 1, 1999, a
School Age Parent and Infant Development Program pursuant to Article
17 (commencing with Section 8390) of Chapter 2 of Part 6, a Pregnant
Minors Program pursuant to Chapter 6 (commencing with Section 8900)
of Part 6 and Section 2551.3, or a Pregnant and Lactating Students
Program pursuant to Sections 49553 and 49559, as those provisions
existed prior to the operative date of the act that adds this
article, or any combination thereof, that chooses to participate in
the Cal-SAFE program shall have priority for Cal-SAFE program funding
for an amount up to the dollar amount provided to each school
district or county superintendent of schools under those provisions
in the fiscal year prior to participation in the Cal-SAFE program,
provided that an application is submitted and approved.
   (5) If a school district or county superintendent of schools
operating a School Age Parent and Infant Development Program, a
Pregnant Minors Program, or a Pregnant and Lactating Students
Program, or any combination thereof, chooses not to participate in
the Cal-SAFE program, it is the intent of the Legislature that the
funding it would have received for the operation of those programs
shall be redirected to the Cal-SAFE program and the school district
or county superintendent of schools may apply in a subsequent school
year to operate a Cal-SAFE program.
   (6) A school district or county superintendent of schools that
terminates its Cal-SAFE program may reapply to establish a Cal-SAFE
program.
   (7) In order to continue implementation of the Cal-SAFE program
beyond the initial three years of funding, each funded agency shall
be reviewed by the department to determine progress towards achieving
the goals set forth in Section 54742.  Thereafter, funded agencies
shall be reviewed and reauthorized every five years based upon a
process determined by the department to continue implementation of a
Cal-SAFE program.
   (b) All of the following requirements shall apply to an
application for the Cal-SAFE program:
   (1) The governing board of a participating local education agency
shall adopt a policy or resolution declaring its commitment to
provide a comprehensive, continuous, community-linked program for
pregnant and parenting pupils and their children that reflects the
cultural and linguistic diversity of the community.
   (2) The local education agency shall provide assurance for
participation in the development of the County Service Coordination
Plan as described in Section 54744.
   (3) A school district or county superintendent of schools shall
agree to participate in the data collection and evaluation of the
Cal-SAFE program.
   (c) To implement a Cal-SAFE program, the funded school district,
or county superintendent of schools shall meet all of the following
criteria:
   (1) Be in compliance with Title IX of the Education Amendments of
1972 Regulations.
   (2) Ensure that enrolled pupils retain their right to participate
in any comprehensive school or educational alternative programs in
which they could otherwise enroll.  School placement and
instructional strategies shall be based upon the needs and styles of
learning of the individual pupils.  The classroom setting shall be
the preferred instructional strategy unless an alternative is
necessary to meet the needs of the individual parent, child, or both.

   (3) Enroll pupils into the Cal-SAFE program on an open entry and
open exit basis.
   (4) Provide a quality education program to pupils in a supportive
and accommodating learning environment with appropriate classroom
strategies to ensure school access and academic credit for all work
completed.
   (5) Provide a parenting education and life skills class to
enrolled pupils.
   (6) Make maximum utilization of available programs and facilities
to serve pregnant and parenting pupils and their children.
   (7) Provide a quality child care and development program for the
children of enrolled teen parents located on or near the schoolsite.

   (8) Make maximum utilization of its local school food service
program.
   (9) Provide special school nutrition supplements, as defined by
subdivision (b) of Section 49553, to pregnant and lactating pupils.
   (10) Enter into formal partnership agreements, as necessary, with
community-based organizations and other governmental agencies to
assist pupils in accessing support services.
   (11) Provide staff development and community outreach in order to
establish a positive learning environment and school policies
supportive of pregnant and parenting pupils' academic achievement and
to promote the healthy development of their children.
   (12) Maintain an annual program budget and expenditure report to
document that funds are expended pursuant to Section 54749.
   (13) Assess no fees to enrolled pupils or their families for
services provided through the Cal-SAFE program.
   (14) Establish and maintain a data base in the manner and form
prescribed by the State Department of Education for purposes of
program evaluation.
   (15) Coordinate to the maximum extent possible with Cal-Learn
program case managers provided pursuant to Section 11332.5 of the
Welfare and Institutions Code and Adolescent Family Life Program case
managers provided pursuant to Article 1 (commencing with Section
124175) of Chapter 4 of Part 2 of Division 106 of the Health and
Safety Code.
  SEC. 5.  Section 54746 of the Education Code is amended to read:
   54746.  (a) In meeting the goals of the program and responding to
the individual needs and differences of pupils and their children to
be served, the funded agency shall complete an intake procedure
regarding each pupil and child upon entry into the program and
periodically as needed thereafter.
   (b) Based upon the information provided during the intake
procedure pursuant to subdivision (a), the funded agency shall
determine appropriate levels and types of services to be provided.
These services may not duplicate services currently provided to the
pupil by a local Adolescent Family Life Program or Cal-Learn program.
  In addition to an academic program that meets district standards,
necessary support services for pupils shall be funded by the
calculation pursuant to paragraph (1) of subdivision (a) of Section
54749.  Allowable expenditures for support services are as follows:
   (1) Parenting education and life skills class.
   (2) Perinatal education and care, including childbirth
preparation.
   (3) Safe home-to-school transportation.
   (4) Case management services.
   (5) Comprehensive health education including reproductive health
care.
   (6) Nutrition education, counseling, and meal supplements.
   (7) School safety and violence prevention strategies targeted to
pregnant and parenting teens and their children.
   (8) Academic support and youth development services, such as
tutoring, mentoring, and community service internships.
   (9) Career counseling, preemployment skills, and job training.
   (10) Substance abuse prevention education, counseling, and
treatment services.
   (11) Mental health assessment, interventions, and referrals.
   (12) Crisis intervention counseling services, including suicide
prevention.
   (13) Peer support groups and counseling.
   (14) Family support and development services, including individual
and family counseling.
   (15) Child and domestic abuse prevention education, counseling,
and services.
   (16) Enrichment and recreational activities, as appropriate.
   (17) Services that facilitate transition to postsecondary
education, training, or employment.
   (18) Support services for grandparents, siblings, and fathers of
babies who are not enrolled in the Cal-SAFE program.
   (19) Outreach activities to identify eligible pupils and to
educate the community about the realities of teen pregnancy and
parenting.
   (c) The funded agency shall provide child care and development
program services located on or near the schoolsite for the children
of teen parents enrolled in the Cal-SAFE program.  Program services
shall be funded by the revenue generated pursuant to paragraph (4) of
subdivision (a) of Section 54749.
   (1) Participation in the child care and development component of
the Cal-SAFE program shall be voluntary.
   (2) There is no minimum age for enrollment, but the child shall be
eligible for enrollment in the child care and development component
until the age of five years or the child is enrolled in kindergarten,
whichever occurs first, as long as the teen parent is enrolled in
the Cal-SAFE program.
   (3) Each child shall have a health evaluation form signed by a
physician, or his or her designee, before the child is allowed on the
school campus or is enrolled in the child care and development
program.  Health screening and immunizations shall not be required
when the custodial parent annually files a written request as
provided for in Section 49451 and Section 120365 of the Health and
Safety Code.
   (4) A developmental profile shall be maintained for each infant,
toddler, and child.  This development profile shall be utilized by
the program staff to design a program that meets the infant's,
toddler's, or child's developmental needs.
   (5) The arrangement of the child care site environment shall be
safe, healthy, and comfortable for children and staff, easily
maintained, and appropriate for meeting the developmental needs of
the individual child.  Child care sites shall meet the health and
safety requirements specified in Chapter 1 (commencing with Section
1429) of, and Chapter 2 (commencing with Section 1442) of, Division
12 of Title 22 of the California Code of Regulations.
   (6) The child care and development component of the Cal-SAFE
program shall operate pursuant to applicable sections of Chapter 2
(commencing with Section 8200) of Part 6.  In addition to meeting the
requirements of Section 8360, teachers shall have at least three
semester units, or the equivalent number of quarter units, of
coursework related to the care of infants and toddlers.
   (7) The child care site shall be available as a laboratory for
parenting or related courses that are offered by the funded agency
with priority given to pupils enrolled in the Cal-SAFE program.
   (d) Inservice training for school staff on teen pregnancy and
parenting-related issues may be funded from revenue generated
pursuant to paragraphs (1) and (4) of subdivision (a) of Section
54749.  However, use of these funds for this purpose shall supplement
and, not supplant, existing resources in these areas.
   (e) The data base required pursuant to paragraph (14) of
subdivision (c) of Section 54745 may be funded from revenue
appropriated for purposes of subdivision (a) of Section 54749.
  SEC. 6.  Section 54747 of the Education Code is amended to read:
   54747.  (a) A male or female pupil, 18 years of age or younger,
may enroll in the Cal-SAFE program and be eligible for all services
afforded to pupils enrolled if he or she is an expectant parent, the
custodial parent, or the noncustodial parent taking an active role in
the care and supervision of the child, and has not earned a high
school diploma or its equivalent.
   (b) A pupil having an active special education Individualized
Education Plan (IEP) shall be eligible until age 22, as long as she
or he has an active IEP and meets the eligibility criteria as
specified in subdivision (a), and shall continue to receive services
identified in the IEP while enrolled in the Cal-SAFE program.
   (c) Pupils shall be eligible for enrollment on a voluntary basis
for as long as they meet eligibility criteria specified in
subdivisions (a) and (b) until they earn a high school diploma or its
equivalent.
   (d) A pupil may not be denied initial or continuous enrollment in
the Cal-SAFE program for any of the following reasons:
   (1) The pupil has had multiple pregnancies.
   (2) The pupil has more than one child.
   (3) The pupil's eligibility status changed from pregnant to
parenting.
   (e) If an enrolled 18-year-old pupil reaches age 19 without
earning a high school diploma or its equivalent, the pupil may be
enrolled for one additional semester if the pupil has been
continuously enrolled in the Cal-SAFE program since before his or her
19th birthday.
   (f) Pupils receiving services under Article 3.5 (commencing with
Section 11331) of Chapter 2 of Part 3 of Division 9 of the Welfare
and Institutions Code are eligible for services under this chapter.
Child care provided under this article shall be the primary source of
child care for these recipients when participating in a Cal-SAFE
program operated by school districts or county superintendents of
schools.
  SEC. 7.  Section 54749 of the Education Code is amended to read:
   54749.  (a) For the 2000-01 fiscal year and each fiscal year
thereafter, a school district or county superintendent of schools
participating in Cal-SAFE shall be eligible for state funding from
funds appropriated for services provided for the purposes of the
program as follows:
   (1) A support services allowance of two thousand two hundred
thirty-seven dollars ($2,237) for each unit of average daily
attendance generated by each pupil who has completed the intake
process pursuant to subdivision (a) of Section 54746 and is receiving
services pursuant to subdivision (b) of Section 54746.  This
allowance shall be adjusted annually by the inflation factor set
forth in subdivision (b) of Section 42238.1.  In no event shall more
than one support service allowance be generated by any pupil
concurrently enrolled in more than one educational program.
   This allowance may not be claimed for units of average daily
attendance reported pursuant to the following:
   (A) Subdivision (b) of Section 1982 for pupils attending county
community schools operated pursuant to Chapter 6.5 of Part 2
(commencing with Section 1980).
   (B) Pupils attending juvenile court schools operated pursuant to
Article 2.5 (commencing with Section 48645) of Chapter 4 of Part 27.

   (C) Pupils attending community day schools operated pursuant to
Article 3 (commencing with Section 48660) of Chapter 4 of Part 27.
   (D) Pupils attending county operated Cal-SAFE programs pursuant to
this article whose attendance is reported pursuant to Section
2551.3.
   (2) Average daily attendance and revenue limit funding for pupils
receiving services in the Cal-SAFE program shall be computed pursuant
to provisions and regulations applicable to the educational program
or programs that each pupil attends, except as provided in paragraph
(3).
   (3) For attendance not claimed pursuant to paragraph (2), county
offices of education may claim the statewide average revenue limit
per  unit of average daily attendance  for high school districts,
payable from Section A of the State School Fund, for the attendance
of pupils receiving services in the Cal-SAFE program, provided that
no other revenue limit funding is claimed for the same pupil and
pupil attendance of no less than 240 minutes per day and is computed
and maintained pursuant to Section 46300.
   (4) Except as provided in subdivision (c) of Section 54749.5,
operators of Cal-SAFE programs shall be reimbursed in accordance with
the amount specified in subdivision (b) of Section 8265 and the
amounts specified in subdivisions (a) and (b) of Section 8265.5 for
each child receiving services pursuant to the Cal-SAFE program who is
the child of teen parents enrolled in the Cal-SAFE program.  To be
eligible for funding pursuant to this paragraph, the operational days
of child care and development programs shall be only those necessary
to provide child care services to children of pupils participating
in Cal-SAFE.
   (5) Notwithstanding paragraph (1), pupils for whom attendance is
reported pursuant to subdivision (b) of Section 1982, pupils
attending juvenile court schools, and pupils attending community day
schools may complete the intake process for the Cal-SAFE program and,
if the intake process is completed, shall receive services pursuant
to subdivision (b) of Section 54746.  The children of pupils
receiving services in the Cal-SAFE program pursuant to subdivision
(b) of Section 54746 and attending juvenile court schools, county
community schools, or community day schools shall be eligible for
funding pursuant to paragraph (4) and no other provisions of this
section.
   (b) Funds allocated pursuant to paragraph (1) of subdivision (a)
shall be maintained in a separate account and shall be expended only
to provide the supportive services enumerated in subdivisions (b) of
Section 54746, in service training as specified in subdivision (d) of
Section 54746, and expenditures enumerated in subdivision (d) of
this section, to pupils enrolled in the Cal-SAFE program as
determined pursuant to Section 54746.
   (c) Funds allocated pursuant to paragraph (4) of subdivision (a)
shall be maintained in a separate account and shall be expended only
to provide developmentally appropriate child care and development
services pursuant to subdivision (c) of Section 54746 and staff
development of child development program staff pursuant to
subdivision (d) of Section 54746 for children of teen parents
enrolled in the Cal-SAFE program for the purpose of promoting the
children's development comparable to age norms, access to health and
preventive services, and enhanced school readiness.
   (d) Funds generated pursuant to Section 2551.3 and this section
shall be maintained in a separate account and shall be expended only
to provide the services enumerated in Section 54746 and the following
expenditures as defined by the California State School Accounting
Manual:
   (1) Expenditures defined as direct costs of instructional
programs.
                                                            (2)
Expenditures defined as documented direct support costs.
   (3) Expenditures defined as allocated direct support costs.
   (4) Expenditures for indirect charges.
   (5) Expenditures defined as facility costs, including the costs of
renting, leasing, lease purchase, remodeling, or improving
buildings.
   (e) Indirect costs shall not exceed the lesser of the approved
indirect cost rate or 10 percent.
   (f) Expenditures that represent contract payments to
community-based organizations and other governmental agencies
pursuant to paragraph (10) of subdivision (b) of Section 54745 for
the operation of a Cal-SAFE program shall be included in the Cal-SAFE
program account.
   (g) To the extent permitted by federal law, any funding made
available to a school district or county superintendent of schools
shall be subject to all of the following conditions:
   (1) The program is open to all eligible pupils without regard to
any pupil's religious beliefs or any other factor related to
religion.
   (2) No religious instruction is included in the program.
   (3) The space in which the program is operated is not used in any
manner to foster religion during the time used for operation of the
program.
   (h) A school district or county superintendent of schools
implementing a Cal-SAFE program may establish a claims process to
recover federal funds available for any services provided that are
Medi-Cal eligible.
   (i) For purposes of serving pupils enrolled in the Cal-SAFE
program in a summer school program or enrolled in a school program
operating more than 180 days, eligibility for child care services
pursuant to subdivision (c) of Section 54746 shall be determined by
the parent's hours of enrollment and shall be for only those hours
necessary to further the completion of the parent's educational
program.
   (j) To meet startup costs for the opening of child care and
development sites, as defined in subdivision (ac) of Section 8208,
and applicable regulations, a school district or county office of
education may apply for a one-time 15-percent service level exemption
within the amount appropriated in the annual Budget Act for the
purposes of paragraph (4) of subdivision (a) for each site meeting
the provision of subdivision (ac) of Section 8208.  To the extent
that Budget Act funding is insufficient to cover the full costs of
Cal-SAFE child care, reimbursements to all participating programs
shall be reduced on a pro rata basis.  A school district or county
office of education shall submit claims pursuant to this subdivision
with other claims submitted pursuant to this section.  Funding
provided for startup costs shall be utilized for approvable startup
costs enumerated in subdivision (a) of Section 8275.
   (k) Notwithstanding any other provision of this article, its
implementation of this article is contingent upon appropriations in
the annual Budget Act for the purpose of its administration and
evaluation by the State Department of Education.
   (l) Notwithstanding any other provision of law, a charter school
may apply for funding pursuant to this article and shall meet the
requirements of this article to be eligible for funding pursuant to
this section.
  SEC. 8.  Section 54749.5 of the Education Code is amended to read:

   54749.5.  (a) County superintendents who operated pregnant minors
programs in the 1979-80 fiscal year, or commenced operation during
the 1996-97 fiscal year, shall continue to operate pregnant minors
programs in the 1980-81 fiscal year, or the 1997-98 fiscal year, as
appropriate, and each fiscal year thereafter, and school districts
that increased their revenue limit in the 1981-82 fiscal year
pursuant to subdivision (d) of Section 42241 shall continue to
operate pregnant minors programs in subsequent fiscal years, unless
the program is transferred to another local education agency, or
unless the county superintendent or district superintendent
demonstrates that programs and services for pregnant minors, such as
continuation school, home instruction, or independent instruction,
are available from other local education agencies in the county,
pursuant to rules and regulations adopted by the Superintendent of
Public Instruction.
   (b) Pregnant minors programs that continue to operate pursuant to
subdivision (a) and that continue to operate as Cal-SAFE programs may
continue to claim funding pursuant to Section 2551.3 for an amount
of average daily attendance up to the amount certified at the 1998-99
annual apportionment for that program.  Programs continuing under
this section may enroll pupils above the level of average daily
attendance certified at the 1998-99 annual apportionment, and that
additional average daily attendance shall be eligible for funding
pursuant to Section 54749 and provisions that apply to the
educational program that the pupil attends.
   (c) County offices of education that choose to retain their
pregnant minor program revenue limit rather than convert to the
Cal-SAFE revenue limit shall provide child care services from funds
provided in their pregnant minor program revenue limit pursuant to
Section 2551.3 for children of pupils comprising base year average
daily attendance as certified at the 1998-99 annual apportionment.
Growth funding for child care shall be equal to the proportionate
share of child care funding for the specific agency's program,
determined by dividing the  certified growth in pupil average daily
attendance by the total  certified average daily attendance.
   (d) Nothing in this section shall be construed as allowing a
county superintendent to receive funding pursuant to Sections 2551.3
and 54749 for the same average daily attendance, or for average daily
attendance generated by the same pupil on the same calendar day.
